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54th month in iva
Comments
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RauHughes said:Hmmm, creditfix aren't the best, as Sourcrates states they're only really interested in selling an IVA. They're also only interested in volume - you're unlikely to be given a great service over the term of your IVA as they only really care about volume and not dealing with trick issues which might arrise that don't fit with their business model.
I disagree with Sourcrates assessment of StepChange however. Yes, they're a debt charity but they're funded by contributions from the credit industry. I know many clients I have sent to them have been given anything but impartial advice. Year to date for 2020 I've had 9 clients go to StepChange for a DRO only for them to be 'advised' a DMP or IVA would be more suitable. Miraculously, when they then approached Citizens Advice Bureau they were then successfully approved for a DRO. StepChange also have an in-house IVA provider - StepChange Voluntary Arrangements - who are not a charity and charge more in fees than most insolvency practices; £2,000 in nominees fees and 15% of contributions in Supervisors fees, plus disbursements. Most IPs have adopted a fixed fee structure now which has been agreed with the majority of creditors over s number of years. This structure means fees are proposed at £3,650 total with no additional.charges for disbursements. This normally works out less on all but the lowest disposable income cases. Ultimately, the IVA fees have little impact on you unless there is a chance you will pay back your debts in full.
Your income and expenditure statement is comprised two main parts - your fixed expense such as mortgage, council tax, utilities, insurances etc then your sundry items like clothing, food, entertainment etc. Sundry items work on guidelines set out each year. If you spend £50 a week on food, but they give you £80 don't threat at all - this is fine and won't cause you any issues even at review. Do not let them talk you into making up expenses tho - I've had clients who have told me Creditfix and their introducers have asked them to make up letters to say they pay childcare or other fictitious expenses to make their application 'fit'. This is a criminal offence and you could be fined or worse for making false declarations to creditors in your proposal.
You need to speak to a good IP practice. I find a good indication is the consultation appointment you have. This call should be at least an hour, you shouldn't feel rushed or pressured and your advisor should encourage you to take our time in reaching a decision. I've worked in debt and insolvency for almost 20 years. I've had to walk out of jobs a week in because of questionable practices as I've worked for companies who place customers above profits and everything inbetween. TrustPilot is a good place to start, and your CAB will also be able to make good recommendations. If you have any general questions or queries post them on here and I'll try to help or drop me a PM.
Good luck!0 -
ObservingAnnie said:
Usually you'll also be allocated £15-25 for home maintenance which works in a similar way to vehicle repairs so home improvement shouldn't be an issue, unless you're planning on building a 200ft extension!
This is all a balancing act between you maintaining a reasonable standard of living and paying back to creditor what you can realistically afford. If you accrue £3,000 of savings by your first annual review the IP may questions why and how you have accrued these and if you are really paying back to creditors as much as you can realistically afford. It's all about the IP being able to justify how and why you have accrued the money.1
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